Walmart plans to increase its exports from India to $10 billion by 2027 and is looking to source toys, shoes, and bicycles from Indian suppliers along with developing new suppliers in categories such as food, pharmaceuticals, consumables, health and wellness, and apparel and home textiles, a PTI report said.
An official from the Bentonville-based company recently met with several domestic toy manufacturers online. Toy makers were informed about their requirements and expected quality standards as the company is directly engaging with domestic toy makers.
"A majority of the Indian toy manufacturers are in the MSME Sector (4000+). Notably, around 97 percent of licenses granted to toy manufacturing units have been allocated to MSMEs by the government," said Naveen Malpani, Partner and consumer sector leader at Grant Thornton Bharat
"As a part of the 'Vocal for Local' initiative, the Government is also promoting the same through National Action for Toys (NAPT) to promote the Toy sector. The government may announce additional investments scheme for toys complying with BIS norms and thereby reducing imports of unsafe toys. With a robust framework in place as well as incentives for local manufacturing, the Government has a clear intention of reducing imports and pushing for quality of Indian toys for exports, he added.
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In their international operations, global retailers like IKEA already source toys from India. Despite India being a net importer of toys until a few years ago, the move represents India's rising strength in the toy industry.
As officers from the Department for Promotion of Industry and internal trade (DPIIT) brought Walmart and the toy association together, they conceptualized and made it happen.
"Walmart is expanding its sourcing from India and working with existing suppliers as well as helping develop new suppliers in the areas of food, pharmaceuticals, consumables, health and wellness, apparel, and home textiles. As well as toys, shoes, and bicycles, we are exploring opportunities," a company spokesperson said.
Walmart announced in December 2020 that it would triple its exports from India to $10 billion annually by 2027, boosting micro, small, and medium businesses (MSMEs) in the country. "The expansion in sourcing will include helping develop hundreds of new suppliers in categories such as food, pharmaceuticals, consumables, health & wellness and general merchandise, along with apparel, homeware and other key Indian export categories," it had stated.
The President and CEO of Walmart Inc. Doug McMillon, visited India earlier in May and reaffirmed the company's commitment. McMillon stated that India's unique supply chain will assist the company in reaching its goal of exporting goods worth $10 billion every year by 2027.
McMillon also reaffirmed the roadmap for building partnerships with Indian communities, expanding opportunities for Indian businesses, and fostering transformational and innovative retail solutions.
McMillon had also met Prime Minister Narendra Modi and tweeted, "Thank you, Prime Minister Narendra Modi, for a great conversation. We are working toward exporting USD 10B per year from India by 2027 and are committed to strengthening logistics, skill development & supply chains to make India a global export leader in toys, seafood & other goods."
With a series of actions being taken by the Department for Promotion of Industry and Internal Trade (DPIIT) to promote domestic manufacturing of toys, Indian manufacturers can also tie up with global players to meet compliance requirements and increase exports.
(With agency Inputs)
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